Real Estate Math
A home was purchased 4 years ago for $280,000. It has appreciated 5% per year using simple appreciation. What is the current value?
A$294,000
B$340,111
C$336,000✓ Correct
D$298,000
Explanation
Simple appreciation: $280,000 × (1 + 4 × 0.05) = $280,000 × 1.20 = $336,000. To solve this, multiply the relevant values: $280,000 at 5%.. The correct answer is $336,000.. This is a common calculation on the Arizona real estate exam.
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